Scaling the Heights

SCALING THE HEIGHTS SCALING Social Inclusion and Sustainable Development in Himachal Pradesh Development and Sustainable Social Inclusion Public Disclosure Authorized THE HEIGHTS Social Inclusion and Sustainable Development in Himachal Pradesh Maitreyi Bordia Das Soumya Kapoor-Mehta Emcet Oktay Taş Ieva Žumbytė Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized SCALING THE HEIGHTS Social Inclusion and Sustainable Development in Himachal Pradesh Maitreyi Bordia Das Soumya Kapoor-Mehta Emcet Oktay Taş Ieva Žumbytė © 2015 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, D.C. 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank. The findings, interpretations, and con- clusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The findings of this work are not binding on the Government of India. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemi- nation of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, D.C. 20433, USA; fax: 202-522-2625; e-mail: [email protected]. Photo credit: Will Vousden / www.flickr.com/photos/willvousden/ i Contents Foreword v Acknowledgments vii Abbreviations xi Summary xiii 1. Introduction 1 1.1. Key questions, data, and methodology 5 2. Poverty and Social Inclusion during a Period of Economic Growth 9 2.1. Land market 12 2.2. Labor market 20 2.3. Education 29 2.4. Health 33 2.5. Sanitation and infrastructure services 43 3. Understanding “Why”: The Possible Drivers of Social Inclusion 47 3.1. Special status and fiscal space 47 3.2. Tradition of a strong, benevolent, accountable state 48 3.3. Independence of the bureaucracy 49 3.4. High incidence of public sector jobs 49 3.5. Difficult, hilly terrain results in unique context of political and economic cohesion 50 ii SCALING THE HEIGHTS 3.6. Small size makes many things possible, but is also a mixed blessing 50 3.7. Women’s participation and gender norms 51 3.8. Caste and religion foster social cohesion 51 3.9. Social inclusion: long-time priority of the government 53 4. Looking Ahead: Sustaining Social Inclusion and Sustainable Development in Himachal Pradesh 57 4.1. Channels of change in Himachal Pradesh 58 Appendix A: Illustrative Examples of Recent Reforms 69 Appendix B: Methodology 73 References 77 Notes 87 Tables Table 2.1. Poverty Decline Benefitted All Social Groups 11 Table 2.2. Childhood Mortality in Himachal Pradesh Lower Than National Average and Neighboring States, But Neonatal Mortality High 35 Table 2.3. Malnutrition Below National Average, But Still An Urgent Issue in Himachal Pradesh 37 Figures Figure 2.1. Fourfold Decline in Himachal Pradesh’s Poverty Rate, Greatest Gains in Rural Areas 10 Figure 2.2. Land Distribution across Social Groups More Equal in Himachal Pradesh Compared to Other States and All India, 2011–12 16 Figure 2.3. Average Land Owned by Social Groups in Himachal Pradesh Converged during 1983–2012 18 Figure 2.4. Female Labor Force Participation in Himachal Pradesh Higher Than Other States and National Average, 2011–12 21 Figure 2.5. Higher Proportion of Himachal Pradesh Workers in Regular Salaried Jobs, More Rural Women Self-Employed Farmers 22 CONTENTS iii Figure 2.6. Share of Public Sector Jobs in Himachal Pradesh Higher Than Other States and National Average 24 Figure 2.7. Construction Sector Jobs Increased during 2004–07 and Flattened after 2009 26 Figure 2.8. Himachal Pradesh’s Employment Outcomes More Inclusive Compared to Neighboring States, 2011– 12 27 Figure 2.9. Himachal Pradesh’s Educational Outcomes for Excluded Groups Better than in Other States, 2011–12 30 Figure 2.10. Largest Improvements in Educational Attainment among Traditionally Excluded Groups in Himachal Pradesh (Urban and Rural, 1983–2011) 32 Figure 2.11. Himachal Pradesh Ahead in Availability and Use of Public Health Facilities 36 Figure 2.12. Fertility Rate in Himachal Pradesh Similar to that in France and Lower than that in the United States 39 Figure 2.13. Sharp Loss of Young Girls Compared to Boys, 1981–2001 40 Figure 2.14. Share of Elderly Higher in Himachal Pradesh and Rising Faster Than National Average, 1961–2026 40 Boxes Box 2.1. Land Reforms in Himachal Pradesh: Result of Decisive Legislation and Its Implementation 13 Box 2.2 Claiming Space, One Step at a Time: Mixed Tale of Gender Equality and Women’s Empowerment in Himachal Pradesh 41 Box 2.3 Himachal Pradesh: A Sudden Trail Blazer in Total Sanitation 44 Box 3.1. Sharing the Benefits of Infrastructure-Led Growth: Himachal Pradesh’s Local Area Development Fund and Cash Transfer Scheme 54 Box 4.1. Malnutrition among Young Children: Some Recent Lessons 61 Box 4.2. Balancing Growth with Environment: Discussions in Two Villages 63 Box 4.3. Training Girls in Nepal: The Adolescent Girls Employment Initiative 65 v Foreword We are often asked: “what does social inclusion and sustainable development look like?” While the question really doesn’t have a clear answer, because it is so context-specific, we use Himachal Pradesh as something of a benchmark. This small Himalayan state in India stands apart in advancing sustainable green growth as well as social inclusion. It has achieved and maintained a degree of equality—across income, caste, tribe and gender—that is admirable by any standard. The state and its citizens have created public goods of global significance, such as by vowing to become “carbon neutral” by 2020 and by their remarkable sense of environmental consciousness. There are few countries in the world where governments have banned the use of plastic bags and smoking in outdoor public spaces, and where citizens and the state jointly enforce the ban, such as in Shimla, the capital of Himachal Pradesh. The fact that Himachal Pradesh has achieved good outcomes in health, education, gender equality, and access to rural infrastructure is well known in India, but no single piece of work has actually analyzed why this may be the case. It is true that central government funds, due to its “special category” status, have allowed Himachal Pradesh a degree of fiscal flexibility. But why did it spend so responsibly? Why did it focus on public service delivery and on improving outcomes? Why is the state as accountable to its citizens as it is? This report peels through to many of the underlying drivers of Himachal Pradesh’s social inclusion. In that sense, it is the first macrosocial analysis of Himachal Pradesh that sets the context, then paints a picture, looks to the likely drivers of future progress, and finally, prognosticates on the way ahead. Scaling the Heights: Social Inclusion and Sustainable Development in Hi- machal Pradesh tells us that commitment of the state and progressive policies vi SCALING THE HEIGHTS are important, and that they are achievable. It points to land reforms as a critical factor in enabling all groups to take part in rising prosperity. It tells us about legislation that has protected the environment, and about policy that ensures that citizens share benefits in a new phase of infrastructure-driven growth. It moves away from the fatalism contained in explanations of social exclusion that imply that culture, social norms, and practices are immutable. In short, Scaling the Heights demonstrates that the state can be the foremost propeller of social inclusion. At the World Bank, we have committed to ending extreme poverty and boosting shared prosperity. Himachal Pradesh shows us that great strides can be made in reducing extreme poverty within a generation, while at the same time, sharing prosperity even with groups that were historically left behind. That is a powerful demonstration for other contexts. It also helps us think of shared prosperity as income growth, sustainability, and inclusion of traditionally disadvantaged groups. The World Bank Group is proud of its long-stand- ing partnership with Himachal Pradesh. Our Country Partnership Strategy for India has social inclusion as one of its pillars and we are committed to sharing knowledge across different contexts. This documentation of Himachal Pradesh’s journey will stand us all in good stead. Yet, as Himachal Pradesh forges ahead, it will have to deal with new chal- lenges. This is because social inclusion is an ongoing process, where progress in one area will inevitably affect others, and new issues will arise as a conse- quence of previous successes and new realities. Himachal Pradesh’s previous achievements create confidence in its ability to maintain the kernels of success and to adapt to the state’s new development context. While the narrative contained in this report is primarily intended as an assessment of the state’s track record of social inclusion, it will be an important resource for other states and countries that have committed to their own journeys in the same direction. Onno Ruhl Ede Jorge Ijjasz-Vasquez Country Director Senior Director India Global Practice on Social, Urban, Rural and Resilience vii Acknowledgments The authors express their gratitude to Charles Cormier (Practice Manager, Global Practice for Energy and Extractives, GEEDR, World Bank) and Py- ush Dogra (Senior Environment Specialist, Global Practice for Environment and Natural Resources, GENDR, World Bank), successive Task Leaders of the Development Policy Operation, under which umbrella this research was undertaken.

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